Search results

1 – 10 of over 25000
To view the access options for this content please click here
Article
Publication date: 1 February 2021

Najimu Saka and Ayokunle Olubunmi Olanipekun

Banking sector reforms can impact the development of the real sector. However, there is very little known about this impact on the construction sector in a developing…

Abstract

Purpose

Banking sector reforms can impact the development of the real sector. However, there is very little known about this impact on the construction sector in a developing country context. This study aims to evaluate the impact of the banking sector reform on the construction output (CNS) using the banking sector reform in Nigeria in 2005 (2005 Banking Sector Reform Programme [BSRP]) as a case.

Design/methodology/approach

This study used econometric methodology comprising unit root test for stationarity, Johansen test for cointegration, analysis of variance (ANOVA) and the analysis of covariance. Time series data covering a period from 1981 to 2017 (37 years) about the banking and construction sector performances are analyzed using ten-time series equations.

Findings

The ANOVA estimates reveal that the 2005 BSRP positively impacted the CNS and construction sector growth rate. However, the ANOVA estimates reveal that the gross domestic product (GDP) and bank total loan had a positive impact on CNS in the period (1981–2017) before and after the 2005 BSRP, and consequently removing the effect of the 2005 BSRP on CNS.

Practical implications

This paper concludes that the banking sector reform has a positive impact on CNS in the Nigerian construction industry. The impact is greater and lasting when the reform is directly targeted at improving CNS.

Originality/value

This study provides empirical evidence of the dependence between banking sector reform and construction sector performance in a developing country context. Also, this study demonstrates the relationship between GDP, banking sector reform and construction sector performance in a developing country context.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

Keywords

To view the access options for this content please click here
Article
Publication date: 28 October 2019

Christiane Hellstern

The purpose of this paper is to examine from a comparative perspective, the impact of structural banking reforms on the legal frameworks for the corporate governance of…

Abstract

Purpose

The purpose of this paper is to examine from a comparative perspective, the impact of structural banking reforms on the legal frameworks for the corporate governance of credit institutions.

Design/methodology/approach

This facilitates a functional analysis of the resulting corporate governance structures, which in turn provides the basis for an analysis of conceptual concerns with regard to the independence of the separate entity.

Findings

The paper points out that structural banking reforms come with significant implications for existing corporate governance structures of credit institutions. The resulting corporate governance structures rise conceptual concerns with regard to both the effectiveness of the independence of the separate entity and the objectives of structural banking reforms generally.

Practical implications

The paper shows that the implementation of structural banking reforms is a complex operational issue and process for the banking groups and the regulators. The challenge will be to establish and upheld the ring fence in a way to lower the risk of intra-group contagion. There is a great need for regulatory and supervisory policies that reinforce the settled ring fence obligations.

Originality/value

This paper’s value lies in providing analysis of the implications of structural banking reforms for the corporate governance of credit institutions. The relevant statutory frameworks as such set only the core components of the new structure. Defining and implementing the design is left to the discretion of the regulators.

Details

Journal of Financial Regulation and Compliance, vol. 28 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

To view the access options for this content please click here
Article
Publication date: 7 March 2008

A. Bitzenis, A. Misic, J. Marangos and Andreas Andronikidis

The main objective of this paper is to critically examine the effects of the ongoing reform process on the overall functioning of Serbia's banking system. It is essential…

Abstract

Purpose

The main objective of this paper is to critically examine the effects of the ongoing reform process on the overall functioning of Serbia's banking system. It is essential that this reform process bears fruit by developing a sound, efficient and reliable banking system.

Design/methodology/approach

The research results were obtained through exploratory field research. The interviews were aimed at capturing the attitudes of bank managers regarding the country's banking reform process and examining the context of the managers' feelings, thoughts, and actions.

Findings

Based on questionnaire results collected from Serbia bank managers in 2004, the findings suggest that the reform process, although characterized as slow and sluggish due to a lack of customer's confidence in banks, has indeed improved the overall functioning of Serbia's banking sector.

Research limitations/implications

This study's weakness is the fact that it was for the most part exploratory research. Conclusions can be drawn from the research, but not at the desired level of cause‐and‐effect.

Practical implications

The Serbian banking reform process can offer lessons for both more and less advanced economies, as it exposes critical problems and mistakes that could be avoided and managed appropriately.

Originality/value

This paper contributes to the research and literature on transition, as Serbia is an area of research in the transition literature, especially regarding the banking sector, which appears to be inadequate and limited.

Details

Studies in Economics and Finance, vol. 25 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

To view the access options for this content please click here
Article
Publication date: 1 January 2005

Jennifer Ping‐Ngoh Foo

The transition countries have been pursuing a market economy since the early 1990s. Crucial reforms in the banking and financial sectors are necessary to provide a…

Abstract

The transition countries have been pursuing a market economy since the early 1990s. Crucial reforms in the banking and financial sectors are necessary to provide a financial structure that supports a market economy, particularly the private and enterprise sector, leading to economic growth. This paper examines the banking and financial development in the transition countries. Arguments for banking reforms are made and the conditions for an efficient banking system are examined. A comparison in the progress of banking reforms and economic growth provides useful lessons not only for the transition countries but for developing and other emerging countries. Lastly, policy choices are suggested for the transition countries.

Details

Managerial Finance, vol. 31 no. 1
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Article
Publication date: 14 September 2015

Mona A. ElBannan

– The purpose of this paper is to examine the effect of bank consolidation and foreign ownership on bank risk taking in the Egyptian banking sector.

Abstract

Purpose

The purpose of this paper is to examine the effect of bank consolidation and foreign ownership on bank risk taking in the Egyptian banking sector.

Design/methodology/approach

Following prior studies (e.g. Yeyati and Micco, 2007; Barry et al., 2011), this study uses pooled Ordinary Least Squares regression models under two main analyses to test the relation between concentration and foreign ownership on one hand and bank risk-taking behavior on the other hand, where observations are pooled across banks and years for the 2000-2011 period. The reform plan was launched in 2004 and resulted in various restructuring activities in the banking system. Thus, to control for the effect of implementing the financial sector reform plan on bank insolvency and credit risk, this study includes a reform dummy variable (RFM) for the post-reform period in models testing the association between consolidation, foreign ownership and bank risk. Therefore, this categorical variable identifies whether bank risk is related to the reform activities that have been observed during the post-restructuring period, 2005-2011. Moreover, to accommodate the possibility that effects of bank concentration and foreign ownership on bank risk differ due to the implementation of the reform plan, the author create two interaction terms: one uses the product of the reform dummy variable and concentration measures, while the other uses the product of the reform dummy and foreign ownership variables to capture interactions. These interaction terms and the dummy variable provide ample room to capture the effect of bank concentration and foreign ownership on bank risks during the post-reform period.

Findings

This study provides empirical evidence that bank concentration is associated with low insolvency risk and credit risk as measured by loan loss provisions (LLP) in the post-reform period. These results are consistent with the “concentration-stability” view, suggesting that concentration of the banking sector will enhance stability. Moreover, evidence shows that while a higher presence of foreign banks reduces bank credit risk in the post-reform period, it appears to increase insolvency risk. These results are robust to using alternative measures. These findings imply that regulators in emerging countries should support foreign investments in banks to transfer better managerial skills and systems. However, government-owned banks are found to be more prone to insolvency and credit risks; thus, their ownership should not be encouraged. Finally, policy makers should reinforce bank consolidation, be prudent in determining the capital adequacy ratio (CAR) and monitor intensively less profitable, well-capitalized and small-sized banks.

Practical implications

Consolidation of the banking sector decreases insolvency risk and credit risk, as measured by LLP in the post-reform period. This study proposes that bank supervisors implement prudent polices in determining the bank CAR, and monitor intensively less profitable, well-capitalized and smaller banks, as they have incentives to increase risk. In addition, regulators should encourage foreign investment in the banking sector and facilitate their operations in Egypt.

Social implications

Bank supervisors should intensely monitor banks with high-CARs that exceed mandatory requirements because they may be more likely to engage in more risk-taking activities.

Originality/value

It provides empirical evidence from a country-specific, emerging market perspective, in which restructuring events affect the national economy. Egypt, similar to other emerging countries in Africa, pursues an institutionally based (bank-based) system of corporate governance, where banks are the primary sources of finance for firms. Therefore, restructuring banks and other financial institutions and supervising their operations ensure the soundness and stability of these institutions, which represent the nerve of emerging economies. Because emerging countries tend to share common characteristics and economic conditions, and the reform of their financial systems is significant for economic development, the Egyptian banking reform and restructuring program should be of interest to other emerging countries to capitalize on this experiment. While international studies on these relationships are mostly cross-country or focus on US banks, firm-specific studies are scant. Furthermore, the findings of this study should be of interest to Egyptian regulators, bank supervisors and policy makers studying the implications of bank reforms.

Details

Managerial Finance, vol. 41 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

To view the access options for this content please click here
Article
Publication date: 1 May 1997

Anghel N. Rugina

The equation of unified knowledge says that S = f (A,P) which means that the practical solution to a given problem is a function of the existing, empirical, actual…

Abstract

The equation of unified knowledge says that S = f (A,P) which means that the practical solution to a given problem is a function of the existing, empirical, actual realities and the future, potential, best possible conditions of general stable equilibrium which both pure and practical reason, exhaustive in the Kantian sense, show as being within the realm of potential realities beyond any doubt. The first classical revolution in economic thinking, included in factor “P” of the equation, conceived the economic and financial problems in terms of a model of ideal conditions of stable equilibrium but neglected the full consideration of the existing, actual conditions. That is the main reason why, in the end, it failed. The second modern revolution, included in factor “A” of the equation, conceived the economic and financial problems in terms of the existing, actual conditions, usually in disequilibrium or unstable equilibrium (in case of stagnation) and neglected the sense of right direction expressed in factor “P” or the realization of general, stable equilibrium. That is the main reason why the modern revolution failed in the past and is failing in front of our eyes in the present. The equation of unified knowledge, perceived as a sui generis synthesis between classical and modern thinking has been applied rigorously and systematically in writing the enclosed American‐British economic, monetary, financial and social stabilization plans. In the final analysis, a new economic philosophy, based on a synthesis between classical and modern thinking, called here the new economics of unified knowledge, is applied to solve the malaise of the twentieth century which resulted from a confusion between thinking in terms of stable equilibrium on the one hand and disequilibrium or unstable equilibrium on the other.

Details

International Journal of Social Economics, vol. 24 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

To view the access options for this content please click here
Article
Publication date: 22 February 2011

Clare Chambers

The purpose of this paper is to examine the political influence on the reforms proffered for the banking sector.

Abstract

Purpose

The purpose of this paper is to examine the political influence on the reforms proffered for the banking sector.

Design/methodology/approach

The paper is divided into three main parts. First, the paper will examine the background of the financial crisis. The second and main part of the paper is the examination and critique of the White Paper reform proposals. The paper concludes by critically examining the opposition party's reform paper and contrasts the proposals.

Findings

The paper concludes that although the bank regulation needs to be reformed, it is debateable whether it is the time or the place or indeed the party that is right to achieve a successful result at the present time.

Research limitations/implications

The implications for the research is that during the next year banking reforms will undergo further changes, therefore, there will be a requirement to revisit and revise the findings in light of the political agenda of the new government.

Originality/value

This paper offers an original insight into the political influences on banking regulation within the UK.

Details

Journal of Financial Regulation and Compliance, vol. 19 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

To view the access options for this content please click here
Article
Publication date: 9 November 2010

Minggao Shen, Jikun Huang, Linxiu Zhang and Scott Rozelle

This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.

Abstract

Purpose

This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition.

Design/methodology/approach

The research is based on a unique data set collected by the authors and other collaborators from a 1998 survey of financial institutions, enterprises, and government officials in southern China.

Findings

Based on an empirical investigation of rural financial reforms, it is argued that China's two‐decade long financial reform was a gradual process that accommodates reforms in other sectors and responds to changing policy goals and the economic and institutional environment in which financial institutions operate. Although using standard measures of financial system performance may cast doubt on the effectiveness of China's rural banking system, when one understands the different roles that it has been asked to play, it can be argued that it has not operated so poorly.

Research limitations/implications

In conclusion, it is found that China's rural economic environment is still changing. If the system continues to change in the future, responding to pressures in the economy, further financial reforms will almost certainly emerge in the coming years.

Practical implications

These findings, although primarily from the 1980s and 1990s, are still helpful in understanding the reform process that is currently ongoing.

Social implications

This paper will help readers make sense of agricultural financial reforms and will allow for more discourse over what has been accomplished and what still is needed.

Originality/value

This is the first manuscript to comprehensively put China's rural financial reforms into the context of modern economic analysis, explaining why China's government proceeded as they did and why the reforms have unfolded in such a stop and start manner.

Details

Agricultural Finance Review, vol. 70 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

To view the access options for this content please click here
Article
Publication date: 4 April 2016

Syed Faizan Iftikhar

The purpose of this paper is investigate the impact of financial reforms, financial liberalization and banking regulation and supervision policies on net interest margins…

Abstract

Purpose

The purpose of this paper is investigate the impact of financial reforms, financial liberalization and banking regulation and supervision policies on net interest margins by using the BankScope database of 76 economies.

Design/methodology/approach

The micro-panel data of more than 1,300 banks of 76 developed and developing economies over the period 2001-2005 have been used to investigate the relationships of financial reform, financial liberalization, banking supervision and regulation with net interest margins by using dynamic two-step system of generalized method of moments.

Findings

The empirical results provided the evidence that financial reform have a negative and statistically significant impact on bank interest margins. Specifically, it is important to note that in a weakly regulated and supervised environment, financial liberalization has a negative and insignificant impact on net interest margins. The findings of this paper also explain that the huge entrance of banks, the removal of interest rate controls, strong banking regulation and supervision and effective liberalization policies have reduced net interest margins in sample countries.

Originality/value

The originality of this research into the existing literature is the inclusion of some recently introduced determinants such as index of financial liberalization (with range 0-3 meaning fully repressed to fully liberalize) and banking regulation and supervision, bank age and the share of foreign and government banks. This paper applies large micro-data to explore the relationship of financial reform, financial liberalization and banking regulation and supervision on net interest margins. This paper also tries to explore the relationship of different levels of liberalization and banking supervision with net interest margins in detail.

Details

Journal of Financial Economic Policy, vol. 8 no. 1
Type: Research Article
ISSN: 1757-6385

Keywords

To view the access options for this content please click here
Expert briefing
Publication date: 21 December 2015

Myanmar banking reform outlook.

1 – 10 of over 25000